BMW Not Sharing Diesel Engines with Lexus

BMW has signed a deal with Toyota to share diesel engines, but the deal stipulates that Lexus may not use them. The reason is pretty obvious- BMW competes directly with Lexus and does not want to give ammunition to the enemy. 

The BMW/Toyota deal says that the two companies will work together to develop lithium-ion batteries and other green tech. Toyota will be able to use BMW's 1.4 liter and 2.0 liter diesel engines in Europe as of 2014. 

Industry analysts speculate that the exclusion of Lexus from the deal will not have much of an effect on Lexus in Europe. Lexus holds 0.2% of the car market in Europe, and Toyota is working to develop it into a niche company in Europe that focuses on technology like hybrids and other innovations. In 2010, 52% of vehicles sold in Europe were diesels. 

Source: Automotive News